The quantity of securities held by the Federal Reserve is controlled through:
A. the U.S. Treasury.
B. the purchases made by the regional Reserve banks.
C. the Fed's annual budget.
D. open market operations.
Answer: D
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Does a 21 year old who inherited millions of dollars' worth of corporate stock and who never works supply anyone with productive services?
A) No, by definition. B) Only if her wealth is invested in capital equipment that adds to economic growth. C) Only if others are willing to pay to watch her enjoy life. D) Yes, if she supplies the services of the resources she owns.
A price floor set above the equilibrium price is not binding
a. True b. False Indicate whether the statement is true or false
Which of the following policies is the government most inclined to use when faced with a positive externality?
a. taxation b. permits c. subsidies d. usage fees
Refer to the supply and demand graph of Product X below. What would happen if the government taxed the producers of this product because it has negative externalities in production?
A. Supply would increase
B. Demand would decrease
C. Supply would decrease
D. Price would increase